IDP Education Jumps Over 9% on Jefferies Upgrade

Highlights:

• IDP Education Limited (ASX: IEL) surged 9.3% after Jefferies Australia raised its price target from $3.50 to $4.50.
• Shares traded at $4.65 at the time of writing, with strong buying interest and high trading volumes.
• As one of the most shorted ASX stocks, the sharp rise may have been fueled by a potential short squeeze.

IDP Education Limited (ASX: IEL) saw its shares surge 9.3% today after Jefferies Australia analyst Wei Sim issued a bullish report, lifting the price target from $3.50 to $4.50. At the time of writing, the stock was trading at $4.65, making it one of the day’s standout performers on the Australian Securities Exchange.

Analyst Confidence Boosts Market Sentiment

Jefferies’ upgrade was driven by renewed optimism over IDP Education’s growth prospects, with Sim highlighting improving market dynamics in the international education sector and the company’s strong positioning in English language testing and student placement services. The research note suggested that recent headwinds in student visa approvals and global demand fluctuations may be easing, potentially paving the way for revenue recovery. This positive sentiment appears to have resonated with investors, prompting strong buying activity.

Short Sellers Under Pressure

IDP Education remains one of the most shorted stocks on the ASX, making today’s sharp rise particularly notable. A sudden upward movement in such stocks often triggers a short squeeze — a situation where traders betting against the stock are forced to buy back shares to cover their positions, adding further fuel to the rally. Market data showed heavy trading volumes, indicating both institutional and retail investor interest following the Jefferies announcement.

Outlook Remains Watchful

While the analyst upgrade has given the stock a near-term boost, market watchers caution that the broader international education sector still faces challenges, including evolving immigration policies and global economic uncertainty. However, with a refreshed analyst target and an apparent shift in sentiment, IDP Education may have gained renewed momentum heading into the final quarter of the year. At the time of writing, IDP Education Limited shares were up 8.51%, trading at $4.59.

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